Stock Code: 0086
2024
ESG REPORT
01
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
About This Report
Sun Hung Kai & Co. Limited (stock code: 86), commonly referred to as SHK & Co., along with its subsidiaries (collectively known as the Group), is delighted to present its Environmental, Social, and Governance (ESG) Report for the year 2024. This Report sets out the Group's sustainability approach, policies, initiatives, and performance, focusing on the period from 1 January 2024 to 31 December 2024 (the Reporting Period).
This Report is prepared in accordance with the Environmental, Social, and Governance Reporting Guide ("ESG Guide") and with reference to the latest Environmental, Social, and Governance Reporting Code ("ESG Code"), outlined in Appendix C2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), as well as the Global Reporting Initiative ("GRI") Standards 2021. The report has been independently verified by SGS Hong Kong Limited under the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information.
SHK & Co.'s credit, investment management, and funds management businesses in Hong Kong and Mainland China are covered by this Report. It does not cover activities with no physical operations nor joint venture companies in which the Group has no operational control. Unless stated otherwise, the Report encompasses the offices and branches of the following units and their subsidiaries in Hong Kong and Mainland China:
- Sun Hung Kai & Co. Limited (SHK & Co.)
- United Asia Finance Limited (UAF)
- Sun Hung Kai Credit Limited (SHK Credit)
This Report has been carefully compiled using information gathered within the Group. The Group has internal control and formal review processes to verify the accuracy and reliability of that information. The Board of Directors (the Board) has reviewed and approved this Report. Throughout its preparation, we have adhered to the reporting principles of "materiality," "quantitative," "balance," and "consistency."
Materiality | This Report is structured based on the results |
of a comprehensive materiality assessment | |
conducted through active stakeholder | |
engagement. The materiality of issues was | |
reviewed and confirmed by the Board and | |
senior management. | |
Quantitative | This Report discloses material environmental |
and social key performance indicators ("KPIs") | |
of the offices and branches from SHK & Co., | |
UAF and SHK Credit. | |
Balance | This Report presents an overview of the |
Group's ESG per for mance with both | |
achievements and areas of improvements | |
disclosed. | |
Consistency | This Report adopts methodologies for |
the calculation of KPIs that are materially | |
consistent with those of previous years for fair | |
comparison of ESG data over time. For further | |
details of the quantification methodologies, | |
please refer to the "Our Environment" section. |
For further background information, please review our Annual Report and Corporate Governance Report.
Opinion and Feedback
We gather and value feedback on our sustainability performance and targets. Please get in touch to share your views at:
Sun Hung Kai & Co. Limited 40/F, Lee Garden One
33 Hysan Avenue Causeway Bay Hong Kong
Tel: (852) 3748 2823
Email: investor.relations@shkco.com
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2024
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
ESG Performance Highlights
Overarching
-
Independent Audit and Assurance:
Engaged an independent third party to verify and provide additional assurance on this Report.
Our Business and Customers
-
UNSDG-AlignedInvestments
Our target for UNSDG-aligned investments increased from 30% to 50% in our 2023 ESG report, achieving this goal in 2024. - Responsible Investment Policy
Launched our Responsible Investment Policy to reinforce the Group's commitment to responsible investing. This policy integrates ESG considerations into our investment decision-making through various screening and alignment procedures. - Information Security Management System Enhancement
Transitioned UAF's information security management system to newer and more stringent ISO 27001:2022 certification for improved data protection and compliance.
Achieved Payment Card Industry Data Security Standard ("PCI-DSS") 4.0 compliance for the credit card business of UAF. - Financial Inclusion and Protection Disclosure Enhancement
Elaborated initiatives and trainings on financial inclusion and protection for UAF customers. Enhanced disclosure on consumer financial protection training for UAF employees.
Our People
-
Employee Growth and Development
132% increase in average training hours per employee.
Our Environment
-
Progress of Environmental Targets
Over 40% reduction in paper consumption compared to 2023 levels. Over 30% reduction in water consumption compared to 2023 levels. - Climate Risk Assessment Enhancement
Expanded our climate risk assessment to include climate scenario analysis.
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2024
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Awards and Recognitions
Award Name | Awarding Institution |
SHK & Co. | |
Standard Chartered Corporate Achievement Awards - Sustainable Corporate | Standard Chartered |
(Social Responsibility - Outstanding Award) (2024) | |
Listed Company Awards of Excellence (2018- 2024) | Hong Kong Economic Journal |
Listed Enterprises of the Year (2018-2024) | Bloomberg Businessweek/Chinese Edition |
Listed Enterprises - Best Risk Management (2024) | Bloomberg Businessweek/Chinese Edition |
Asian Excellence Awards - Asia's Best CEO (2024) | Corporate Governance Asia |
Asian Excellence Awards - Asia's Best CSR (2024) | Corporate Governance Asia |
Asian Excellence Awards - Best Investor Relations Company | Corporate Governance Asia |
(2016-2019, 2023-2024) | |
Asian Excellence Awards - Best Corporate Communications (2023-2024) | Corporate Governance Asia |
China IR Annual Awards - Best Value Creation Award (2024) | Roadshow China |
Caring Company (2016-2024) | The Hong Kong Council of Social Service |
Happy Company (2021-2024) | Happy Index Foundation |
Gold Award Winner of The Asset ESG Corporate Awards | |
(2013-2018, 2020, 2022-2024) | The Asset |
Titanium Award Winner of The Asset ESG Corporate Awards (2019, 2021) | |
Gelonghui Jinge Awards: ESG Disclosure Excellence Enterprise (2024) | Gelonghui |
Green Office Award & Eco-Healthy Workplace (2021-2024) | World Green Organisation |
Good MPF Employer (2014-2024) | Mandatory Provident Fund Schemes |
Authority | |
The Racial Diversity and Inclusion Charter for Employers (since 2022) | Equal Opportunities Commission |
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Award Name | Awarding Institution |
UAF | |
Best SME Partner Award (2022 - 2024) | The Hong Kong General Chamber of Small |
and Medium Business | |
The MARKies Awards - Best Use of Venue (Silver) (2024) | Marketing - Interactive |
The MARKies Awards - Best Use of Out-Of-Home (Silver) (2024) | Marketing - Interactive |
Marketing Excellence Awards - Excellence in Omnichannel (Bronze) (2024) | Marketing - Interactive |
DigiZ Awards - Best Effective Search Campaign Gold Award (2022-2024) | Marketing - Interactive |
Sparks Awards - Best Media Campaign - Out of Home (2024) | Marketing - Interactive |
Good MPF Employer (2023-2024) | Mandatory Provident Fund Schemes |
Authority | |
ACES Awards - Outstanding Leader in Asia (CEO and Executive Director) | MORS Group |
(2024) | |
ABF Retail Banking Awards (2024) | Charlton Media Group |
Manpower Developer (2012-2024) | Employees Retraining Board (ERB) |
Happy Company Award (2017-2024) | Happy Index Foundation |
Caring Company (2005-2024) | The Hong Kong Council of Social Service |
Partner Employer Award (2024) | The Hong Kong General Chamber of Small |
and Medium Business | |
The Racial Diversity & Inclusion Charter for Employers (Since 2020) | Equal Opportunities Commission |
Good Employer Charter (2024) | Labour Department |
Joyful@Healthy Workplace Charter (2024) | Occupational Safety & Health Council |
Mental Health Workplace Charter (2024) | Occupational Safety & Health Council |
Privacy-Friendly Awards (Gold Award) (2023) | Officer of the Privacy Commissioner for |
Personal Data (PCPD) | |
2024 CIO100 ASEAN Awards (Chief Information Officer) (2024) | Foundry Co. |
Award Name | Awarding Institution |
SHK Credit | |
iChoice Most Popular Mortgage Service Provider (2017-2024) | iChoice Award |
Headline No. 1 Awards"No.1 in Loans and Financing Services"(2023-2024) | Sing Tao Limited |
Sun Hung Kai & Co. Limited
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Our Sustainability Commitment
At SHK & Co., we recognise sustainability is crucial to long-term success. We support the United Nations Sustainable Development Goals (UNSDGs) and integrate them into business practices. Our Sustainability Policy, unveiled in 2020 and regularly updated, serves as a guiding framework and outlines values we uphold across our business. ESG factors are made part of our decision-making processes. For example, we incorporate UNSDGs into our Private Assets Portfolio Management System, so we can monitor our sustainable investments and progress in an effective and timely manner.
To achieve our objectives, we align our plans with international initiatives. To ensure sustained value creation for our co-workers, partners, communities, and the planet, we have established ESG related targets and assess our progress annually. Through this comprehensive approach, we aim to foster a positive and lasting impact on our stakeholders, society, and the environment.
In order to drive long-term business and nancial development of the Group, we strive to operate under the highest standards of integrity through a robust governance structure, while managing social and environmental risks.
Our investors and customers are our utmost priority. We actively work to safeguard against potential risks, whilst nurturing our relationships and fostering continuous improvement in our services.
As a leader in nancial services, our business has a unique position and inuence potential to support and protect the environment through its investment decisions and green practices, with the ultimate goal to support the global transition towards a low-carbon economy.
Business | Investors |
and | |
Customers |
Creating
Sustained
Environment Value Employees
Community
As a nancial services company, our employees are at the heart of our operations. Hence, we invest in their professionalism and competency to responsibly deliver world-class expertise, and strive to create an open and inclusive corporate culture that contributes to the well-being of all.
We invest in causes and initiatives that foster a strong and sustainable society, while engaging, supporting and nurturing the future leaders of tomorrow.
Sun Hung Kai & Co. Limited
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Building on our accomplishments last year, we reassessed and updated our ESG goals. To further reduce our own environmental footprint, we actively seek innovative solutions and integrate environmentally friendly practices in our operations. Sustainability, corporate resilience and growth are interconnected. By leveraging our resources, expertise, and collaborative partnerships, we strive to create a more sustainable future that benefits the Group, society and the environment. To reflect our ongoing commitment to sustainability, this year we have set a new GHG emission target.
Our Progress as of | |||
Environmental Aspect | Targets | the End of 2024 | |
General | • | Maintain at least 50% of the Group's investment portfolio with | Achieved |
alignment to UNSDGs annually. | |||
• | Participate in an ESG/sustainability-related activity in financial industry | Achieved | |
annually. | |||
• | Organise an environmental initiative that reduces or offsets | Achieved | |
environmental impact annually. | |||
Greenhouse Gases | • | By 2030, reduce GHG scope 2 emissions by 35%1, compared to FY20. | In Progress |
Waste | • | Ensure that 90% of office paper is certified FSC or PEFC paper annually. | Achieved |
• | By 2025, reduce absolute paper usage by 35%, compared to FY19 | Achieved | |
baseline. | |||
• | By 2025, maintain use of paper cheques issued for customer funding | Achieved | |
to be 10% or below at UAF. | |||
• | By 2024, reduce individual desk bin by 25% and increase recycling | Achieved | |
points at SHK & Co. | |||
• | By 2024, eliminate the use of single-use tableware in office. | Achieved | |
• | By 2024, deliver a 1-hour training session to staff on waste generation | Achieved | |
and management. | |||
Electricity | • | By 2025, reduce absolute electricity usage by 25% compared to FY19 | Achieved |
baseline. | |||
• | Maintain energy-efficient and smart office facilities installation | Achieved | |
strategically. | |||
Water | • | Minimise the consumption of bottled/barrel water. | Achieved |
1 Assuming emission factors (EFs) for the following years up till 2030 will remain constant at the 2020 levels.
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Stakeholder Engagement
SHK & Co. actively engages with its stakeholders to gather their insights, perspectives and expectations for the Group. This ongoing process is vital for our continuous improvement and development across all operational divisions. By deepening our understanding of our stakeholders' viewpoints, we can identify and verify key ESG topics to prioritise. The following table summarises our major communication channels with both internal and external stakeholders.
Key Stakeholder Groups | Engagement Channels | |
Shareholders/Investors | • | General meetings |
• | Press releases | |
• | Annual/interim reports | |
• | Sustainability reporting | |
• | Circulars and announcements | |
• | Investor meetings, roadshows and correspondences | |
• | Stakeholder survey | |
Employees | • | Business meetings |
• | Conferences | |
• | Goals and performance discussion meetings | |
• | Departmental meetings and briefings | |
• | Global Townhall | |
• | Surveys and comment boxes | |
• | Training and orientation programmes | |
• | Newsletters | |
• | Informal employee events | |
Customers | • | Personal contact |
• | Social media | |
• | Satisfaction survey | |
• | Meetings and correspondences | |
• | Circulars and internal memorandum | |
• | Mobile applications | |
Suppliers | • | Site visits |
• | Meetings and correspondences | |
• | Stakeholder survey | |
Community Partners/Non-governmental Organisations | • | Charity activities |
• | Volunteering opportunities | |
• | Sponsored events and projects | |
• | Stakeholder survey | |
Media | • | Interviews |
• | Press releases | |
• | Meetings and correspondences | |
• | Stakeholder survey | |
Government Bodies | • | Site visits |
• | Meetings and correspondences | |
Banks/Brokers | • | Annual/interim reports |
• | Meetings, emails and correspondences | |
• | Compliance reports | |
• | Stakeholder survey | |
Fund/Business Partners | • | Annual/interim reports |
• | Meetings, emails and correspondences | |
• | Stakeholder survey | |
Investees/Portfolio Companies | • | Annual/interim reports |
• | Meetings, emails and correspondences | |
• | Stakeholder survey | |
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Materiality Assessment
The Group values the views of both its internal and external stakeholders. In 2024, we engaged an independent sustainability consultant to collect feedback from our stakeholders on the Group's ESG performance and to pinpoint the sustainability issues they view as most significant. This valuable information allows us to align our business practices more effectively, optimise our resource use, and refine our strategies to focus on these key priorities. Our key stakeholders include Directors and Management, Employees, Fund and Business Partners, Shareholders and Investors, Financial Counterparts and Suppliers, Investees/Portfolio Companies, Community Partners and Non-governmental Organisations (NGOs) and the Media.
In accordance with the relevant principles defined by the GRI Standards, we adopted a three-step approach to assess the materiality of ESG issues:
1. | Identification | Based on last year's materiality assessment, we identified 20 |
focus points. The set of material issues was determined through | ||
peer benchmarking, a discussion with senior management, | ||
consideration of the Group's corporate values and reference to | ||
GRI Standards. | ||
2. | Prioritisation | We collected feedback from material stakeholders via online |
survey, ranking material ESG issues by their perceived | ||
importance. 10 members of the Board and management were | ||
invited to rank the importance of material issues for the Group's | ||
sustainable development, whilst 635 other stakeholders, | ||
including shareholders/investors, employees, fund/business | ||
partners, banks/brokers, suppliers, investees/portfolio | ||
companies, community partners/NGOs, and the media were | ||
surveyed to rank based on their preferences and perceptions. | ||
3. | Validation | The list of material topics and materiality assessment results |
were presented to senior management for input and validation | ||
and then considered by the ESG Committee and the Board of | ||
SHK & Co. | ||
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The following materiality matrix presents the relative importance of the material issues to our stakeholders and to the sustainable development of the Group. The material issues are subsequently grouped under three tiers of importance in the table below.
Most Important
Materiality Matrix
16
18
15
20
Stakeholders
14
9 17
19
7
Importance to
11
8
12
2
4
10
1
13
6
53
Most Important
Importance to Sustainable Development at SHK & Co.
Governance | Social | Environmental |
Sun Hung Kai & Co. Limited
Environmental, Social and Governance Report 2024